IAG has entered into a sale agreement with Tokio Marine & Nichido Fire Insurance for the former's operations in Thailand and Indonesia. The sale price is approximately A$525 million ($387 million).
The sale agreement with Tokio Marine covers IAG’s interests in the following subsidiaries:
- 98.6% of Safety Insurance in Thailand; and
- 80% of PT Asuransi Parolamas in Indonesia.
Separate to the transactions with Tokio Marine, IAG has reached an agreement to sell its 73.07% interest in AAA Assurance Corporation, based in Vietnam.
All transactions are expected to conclude in the financial year ended 30 June 2019, subject to regulatory approvals or notifications.
An after-tax profit of at least A$200 million is expected to be earned from the combined transactions, after allowance for related costs and foreign currency translation reserve effects.
IAG’s interests in Malaysia and India will continue to be treated as associates.